Bonds Up Again As Stocks Down Again; 10Y Yield Below 2.7%

By Michael Aneiro

Once again embracing their traditional role of ballast in a portfolio, bonds are posting gains for a third straight day as equities continue to fall. The ten-year Treasury note is up 8/32 in price so far Monday to trim its yield to 2.697%, per Tradeweb data, and the 30-year note is up 14/32 to yield 3.563%. It’s worth noting that the ten-year yield is now pretty much exactly where it was eight months ago, and it’s remained within a tight band between 2.6% and 2.8% over the past ten weeks.

The big news in bond-land this week will arrive Wednesday, when we get to see the minutes of the Federal Reserve’s latest policy committee meeting. It could be an interesting read – the meeting produced a change in the Fed’s forward guidance on short-term interest rates and also a notable change in the so-called dot plot of where Fed committee members see rates moving down the road. The minutes should offer a better idea of the thinking behind these shifts and what degree of support they have from the Fed committee’s various voting members.

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